Traders Wait For Additional Catalysts
S&P 500 futures are mostly flat in premarket trading as traders wait for key catalysts that will be released later this week.
There are no important economic reports scheduled to be released today, and traders will have to wait until Tuesday to see the important Retail Sales data for May. Analysts expect that Retail Sales declined by 0.7% on a month-over-month basis.
Traders will also have a chance to take a look at Producer Prices data for May. Producer Prices are expected to grow by 6.3% year-over-year in May, but it remains to be seen whether the market will be impressed by these numbers since it has successfully ignored the recent increase of Inflation Rate.
On Wednesday, market’s focus will shift to Fed Interest Rate Decision and the subsequent commentary. This Fed meeting is especially important since the Fed will release FOMC Economic Projections which will likely have a material impact on markets.
WTI Oil Is Moving Towards The $72 Level
WTI oil continues to move higher as traders remain focused on the rebound of oil demand. The recent data from U.S. airlines suggests that demand continues to rise which is bullish for oil.
Interestingly, energy-related stocks failed to gain sufficient upside momentum in recent trading sessions, but the continuation of oil rally will likely push them to higher levels.
Precious Metals Decline At The Start Of The Week
Gold declined below the 20 EMA at $1875 and gained strong downside momentum. Currently, it is trying to get to the test of the 50 EMA which is located at $1840. Silver also found itself under significant pressure and is testing the major support level at $27.50.
It looks that precious metals traders were surprised by the recent strength of the U.S. dollar. U.S. dollar is flat against a broad basket of currencies today, but the U.S. Dollar Index has recently failed to settle below the psychologically important support level at 90 which served as a material bearish catalyst for gold and silver. In this light, gold mining stocks and silver mining stocks will find themselves under pressure at the start of the week.
For a look at all of today’s economic events, check out our economic calendar.